SunTrust: Tech fueling growth in Tampa Bay

Allen Brinkman knew what SunTrust Banks’ survey of business leaders was going to say before the results were tabulated.

That’s because key survey findings – showing that business leaders rank their own companies stronger than the economy – is exactly what Brinkman has been hearing from Tampa Bay firms.

“Three or four months ago I was in a meeting with our CEO and he asked what we were hearing. I said what I’m seeing is a lot of companies have built up cash on their balance sheet in the last couple of years. They’ve had a lot of deferred maintenance, things they have not done. They’re comfortable re-investing in themselves, but still not comfortable with the economy growing at a rapid pace,” said Brinkman, chairman, president and CEO of SunTrust Bank Tampa Bay and chairman of the Tampa Hillsborough Economic Development Corp.

The survey by SunTrust (NYSE: STI) showed that 65 percent of leaders in mid-size companies, with revenue between $10 million to $150 million, expect their business to be in even better financial shape in six months. Only 48 percent of the same group believe the overall economy will be better.

At smaller firms, with annual revenue of $2 million to $10 million, 63 percent were positive about the current strength of their own business, while 34 percent felt the same about the general economy.

For both size firms, the top business action to spur growth was investing in new technology. Brinkman also is seeing that locally, as companies increasingly use Web-based training for workers and online platforms to connect with customers. That has a trickle-down impact as well.

“In Tampa, the companies I see emerging really fast and starting to grow revenue are all tech companies,” he said.

One difference Brinkman sees between the SunTrust poll of 500 business leaders and the local economy is that some smaller firms, those with less than $10 million in revenue, are on slightly less stable footing in Tampa Bay. While many have weathered the downturn, watched competition go away and now have leading positions in their fields, others are still struggling, he said.

He cited positive momentum for title companies and law firms that do work related to the housing market, and a more difficult environment for retailers.

Concerns about health care and government regulation in general still need to stabilize before economic confidence returns, Brinkman said.